Professional Documents
Culture Documents
1
Standardization and Localization of
HRM Practices
MANAGING PEOPLE
• the most culture-bound
resource in an international
context
5
Three Cultures Interact to Influence
Standardization and Adaptation
6
Institutional Effects On MNEs
7
Country-of-Origin Effect
9
Home-Country Effect
10
Reverse Diffusion
11
Factors Driving
Localization
12
Factors Driving
Standardization
13
Host-country Culture
14
Mode of Operation
16
Impact of the Cultural & Institutional
Context on HRM Practices
17
Firm size, maturity and
international experience
• The size of the firm, maturity, and international experience
are important firm level factors.
• Motorola in China is a case in point:
– Large size
– Wealth of international experience
– A wholly owned operation in Tianjin, China, 1992
– Centralized IHR programs
– Management could draw on these aspects when entering China
18
Subsidiary Roles
Global Innovators
• provide significant knowledge for
other units (the IHRM policies and
practices are transferred to the MNE
affiliates)
Integrated Players
• create and receive knowledge (the
IHRM practices and policies of the
MNE and subsidiary are similar,
characterized by global
standardization and localization)
19
Subsidiary Roles
Implementers
• rely on knowledge from the parent or peer
subsidiaries and create a relatively small
amount of knowledge themselves (IHRM
policies and practices are mainly made in
the parent company and implemented at
the local level)
Local Innovators
• engage in the creation of relevant
country/region-specific knowledge and
have complete local responsibility ( the HRM
policies and practices are localized) 20
HRM Roles With Global Code of
Conduct
21